Memphis Short-Term Rental Regulations
| Permit | ✓ Required — Short Term Rental Property Permit ($300) |
| Primary Residence | Not required |
| Annual Day Limit | No limit |
| Tax Rate | ~15.5% + $2/night |
| Max Penalty | $50 per day per violation |
| Insurance | $1,000,000 liability required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Short Term Rental Property Permit
| Fee | Amount |
|---|---|
| Initial cost | $300 |
| Renewal | $150 / Annual |
This permit type does not require primary residence.
Application Process
Apply electronically or in writing to the City of Memphis Division of Public Works. Application must include site plan, proof of ownership, proof of insurance ($1M+), compliance verification form, designation of a responsible party within 50 miles, and acknowledgement of the ordinance. Division may conduct on-site inspection before permit issuance or renewal.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Tennessee State Sales Tax | 7% | State of Tennessee |
| Shelby County Room Occupancy Tax | 5% | County |
| Memphis STR Privilege Tax | 3.5% | City of Memphis |
| Memphis Destination Marketing Assessment | $2.00 per occupied room night | City of Memphis |
Combined rate: ~15.5% + $2/night of gross rental income.
Collection: Platforms with voluntary collection agreements (e.g., Airbnb) collect and remit taxes automatically. Hosts on platforms without such agreements must self-remit occupancy and sales taxes to the city.
Rental Limits
Memphis does not impose an annual cap on the number of nights you can rent.
Occupancy & Density Limits
Maximum 3 sleeping rooms per STR property
Zoning & Restrictions
STR properties regulated under Chapter 5-44 and not under rooming house provisions of the Memphis and Shelby County Unified Development Code. No specific zone-based prohibition stated in the ordinance.
Insurance & Safety
Insurance
Operators must maintain at least $1,000,000 in liability insurance covering the property's use as a short-term rental.
Safety & Operating Requirements
- Smoke alarms meeting UL 217 standards installed in all sleeping areas and in every room in the path of egress from sleeping area to exit door
- Carbon monoxide detectors installed on every habitable floor
- Compliance with applicable building, health, and life safety codes
- Minimum rental period of 24 hours (no compensation for stays under 24 hours)
- Principal renter must be at least 18 years of age
Penalties for Non-Compliance
Maximum penalty: $50 per day per violation.
Platform Requirements
Hosting platforms with voluntary collection agreements with the city are solely responsible for collecting and remitting all occupancy and sales taxes. STR listings must display a valid permit number.
Compliance Checklist
Follow these steps to legally operate a short-term rental in Memphis:
- Meet safety requirements. Smoke alarms meeting UL 217 standards installed in all sleeping areas and in every room in the path of egress from sleeping area to exit door. Carbon monoxide detectors installed on every habitable floor. Compliance with applicable building, health, and life safety codes. Minimum rental period of 24 hours (no compensation for stays under 24 hours). Principal renter must be at least 18 years of age.
- Obtain liability insurance. $1,000,000 minimum.
- Apply for Short Term Rental Property Permit. Submit application + $300 fee.
- Register for tax accounts. Set up lodging tax accounts with City of Memphis Division of Public Works.
- Display your permit number. Include your permit/license number in all listings and advertisements.
- Collect and remit taxes. ~15.5% + $2/night on all bookings.
- Renew annually. $150 renewal fee.